As part of the Biden-Harris Administration’s “Investing in America” agenda, “the U.S. Department of Energy (DOE) today announced over $3 billion for 25 selected projects across 14 states to boost the domestic production of advanced batteries and battery materials nationwide. The portfolio of selected projects, once fully contracted, are projected to support over 8,000 construction jobs and over 4,000 operating jobs.”
The ArkLaTex area should benefit from a portion of the money as Vancouver-based Standard Lithium which already operates in the region and Houston-based TerraVolta Resources will receive 225 million dollars each “aimed at expanding domestic manufacturing of all segments of the battery supply chain and increasing production of critical minerals in the U.S.”
In the press release from the Department of Energy, it was advanced that “Batteries are critical to strengthen- ing the U.S. grid, powering American homes and businesses, and supporting the electrification of the transportation sector. Administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC), the selected projects will retrofit, expand, and build new domestic facilities for battery-grade processed critical minerals, battery components, battery manufacturing, and recycling. Under the Biden-Harris Administration, the private sector has made a historic $120 billion investment in the EV supply chain and this program is integral to the President’s clean energy industrial strategy to bolster a domestic supply chain that enhances America’s energy security and economic competitiveness.”
“We’re in the midst of a manufacturing revival in the United States as the Biden-Harris Administration’s Investing in America agenda continues to breathe new life into communities and local economies across the country,” said U.S. Secretary of Energy Jennifer M. Granholm. “By positioning the U.S. at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition.”
“The Biden-Harris administration is using every available tool to onshore and friend-shore the supply chain for EVs and batteries, working with our allies and partners, for the benefit of our national security, our economy, and our planet,” said John Podesta, Senior Advisor to President Biden for International Climate Policy. “Today’s battery manufacturing grants from DOE will boost America’s manufacturing base, create good-paying union jobs all over the country, and help tackle the climate crisis.”
The Biden-Harris administration hopes to ultimately boost the battery supply chain. “Through grants and loans, DOE is developing a diversified portfolio of projects that help deliver a durable and secure battery manufacturing supply chain for the American people. Through MESC, the Investing in America agenda will generate $16 billion in total investment for battery manufacturing and recycling through the Battery Materials Processing and Battery Manufacturing and Recycling Program. Using market, economic and supply chain security-related technical analysis, MESC collaborates with experts to identify gaps and growth opportunities across the nation’s energy supply chains, from raw materials to processing and manufacturing. These analyses inform investment and program implementation. Today’s announcement of round two selections builds on this progress and aims to further address existing and future supply chain challenges.
“The selected projects span strategic segments across the supply chain, building and expanding commercial-scale facilities to extract and recycle critical minerals including lithium, graphite, and manganese, as well as manufacture components. These components represent the most essential building blocks of the battery supply chain, like electrolyte salts, solid-state electrolytes, polymers for separators, cathode and anode materials, that are critical to onshore a robust and reliable energy supply chain. The selected projects also cover traditional and next-generation lithium-ion chemistries, as well as non-lithium-ion technologies, to ensure that the U.S. has a diverse portfolio of domestic battery technologies that can strengthen our overall energy security.”
In a press release from Standard Lithium, they outlined some key points as it relate to their interests: · Conditional Award: The $225 million funding by the DOE will support the construction of the Central Processing Facility (“CPF”) for Phase 1 of the South West Arkansas project. The CPF for Phase 1 is being designed to annually produce 22,500 tonnes of battery-quality lithium carbonate, utilizing Direct Lithium Extraction (“DLE”) technology. The U.S. Government’s significant cost share demonstrates its commitment to the project, underscoring the strategic importance of developing a domestic supply chain for critical minerals.
· Project Development and Expansion: The South West Arkansas project, located in Lafayette and Columbia Counties, Arkansas, is being developed in partnership with Equinor, with ownership shared at 55% by Standard Lithium and 45% by Equinor. The project’s design is being updated from its original Preliminary Feasibility Study (PFS), and now targets a larger total output of 45,000 tonnes per annum of lithium carbonate, to be developed in two phases of 22,500 tonnes each. A Definitive Feasibility Study (DFS) and Front-End Engineering Design (FEED) are currently underway to support this expansion.
· Location and Community Impact: The SWA project’s DLE and lithium carbonate facilities are planned to be located on a 118-acre property in rural Lafayette County, approximately 7 miles south of Lewisville, Arkansas. The brine unit that will source lithium-bearing brine for the project facilities spans lands in Lafayette and Columbia Counties. In addition to creating up to 300 construction and 100 direct jobs, the project will significantly benefit the local community through infrastructure improvements, community health initiatives, educational partnerships, and workforce development programs.
In the press release from TerraVolta Resources, LLC, “a leading U.S. critical minerals exploration and production company, that they were “selected by the U.S. Department of Energy’s (“DOE”) Office of Manufacturing and Energy Supply Chains for a $225 million award negotiation to support the creation of a more than $1 billion lithium production facility in the Texarkana region that spans Arkansas and Texas.” However, they did not specify exactly where the new facility would be located.
“The DOE’s funding will support TerraVolta’s plans to design, build, and operate Project Liberty Owl, a commercial- scale lithium production and conversion facility. TerraVolta’s facility, which will produce battery-grade lithium from domestic brine resources using direct lithium extraction technology, is initially expected to have a production capacity of at least 25,000 tonnes of lithium carbonate annually–enough lithium to power approximately 500,000 electric vehicles per year.
“Earlier this year, TerraVolta completed a successful supply well that further validated the Company’s premium resource and industry-leading lithium concentrations.”
“TerraVolta’s Liberty Owl facility is expected to create more than 125 permanent jobs in the Texarkana region. Batteries manufactured using lithium produced at this facility could eliminate more than 2.2 million tonnes of carbon dioxide emissions annually. Construction of Liberty Owl is slated to begin in 2028 with operations in 2029.”
As the area prepares for lithium exploration and extraction. There are still hurdles to get over. According to Axios Northwest Arkansas, “A coalition of would-be lithium extractors recently filed an application with the Arkansas Oil and Gas Commission to establish a royalty rate for landowners.” That application was delayed Monday, September 23, 2024.
“The group is made up of Albemarle Corp., Saltwerx (ExxonMobil), SWA Lithium (Standard Lithium), LANXESS Corp. and TETRA Technologies, all of which have some stake in the budding industry.
“The proposed royalty would be calculated by the volume of lithium carbonate produced from an extraction project, times its market index price, times a 1.82% royalty rate, times mineral-rights owners’ acreage.”
However, according to Arkansas Business landowners have called the proposal pitiful, way too low.
It is possible that whatever rate is agreed upon could have at least some impact on how the royalty payouts will be in Texas.
However according to Reuters in an article published in March of this year notes that “the regulator, known as the Railroad Commission of Texas, has no timeline for when it will finish that task.
“I don’t even know where to start in terms of working with the local authorities to get brine mineral rights in Texas. It’s confusing,” said Brady Murphy, CEO of Tetra Technologies, which aims to produce lithium with partner Exxon Mobil (XOM.N).
“The Railroad Commission of Texas told Reuters it plans to release its rules for public comment once they are formulated, and then the three commissioners will vote on them.”
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